As part of Türkiye's goal of reaching 20,000 megawatts (MW) of installed nuclear power capacity by 2050, a new package of investment incentives has been introduced, according to multiple media reports on Thursday.
Under amendments added to an omnibus bill, nuclear power plant investments will be exempt from stamp duty and VAT, reducing the financial burden on investors.
Four new articles, signed by ruling Justice and Development (AK Party) lawmakers, have been added to the 30-article economic omnibus bill currently being discussed by Parliament's Planning and Budget Commission. The bill also includes a proposal to increase the minimum pension to TL 23,552 ($500).
The new provisions are aimed at providing tax incentives for Türkiye's nuclear energy investments.
According to the proposed amendment, documents prepared during the investment process by companies holding preliminary licenses or operating licenses to generate electricity from nuclear power plants will be exempt from stamp duty, the reports said. As a result, documents related to transactions with public institutions, the purchase of goods and services, financing arrangements, and investment loans carried out as part of these projects will not be subject to the stamp duty.
VAT support until 2045
Moreover, a temporary article added to the VAT Law introduces significant tax advantages for nuclear power plant investments covered by investment incentive certificates.
Accordingly, until Dec. 31, 2045, VAT paid on construction work that cannot be recovered through normal VAT deductions will be refunded to investors if requested within the prescribed period.
In addition, deliveries of machinery and equipment used within the scope of the investment will also be exempt from VAT until the same date. Any VAT incurred on these purchases that cannot otherwise be deducted may also be refunded upon the taxpayer's request.
If the investment project is not completed, any taxes that were not collected or were refunded will be recovered together with tax penalties and late-payment interest.
At the same time, the reports suggested that the president would have the authority to extend these incentives until Dec. 31, 2050.
Another temporary amendment to the Corporate Tax Law is intended to facilitate financing for nuclear energy investments.
Under the proposal, for loans obtained from banks and other financial institutions by companies holding preliminary or full operating licenses, the percentage used in calculating thin capitalization rules will be reduced from 50% to 25% until Dec. 31, 2045.
This measure applies only to financing obtained from independent lenders and does not cover loans from related companies. The president will also have the authority to extend this measure for up to five additional years.
The proposed moves come as Türkiye seeks to construct two more nuclear power plants, in addition to the one currently being built in the southern Mersin province. That plant, developed by Russia's Rosatom, is expected to go online later this year.